Aug. 9 (Bloomberg) -- Capital One Financial Corp., the
lender that gets more than 50 percent of revenue from credit
cards, said it’s “reasonably possible’ that losses to buy back
soured mortgages may exceed reserves by $1.7 billion.

That’s a 13 percent increase over the first-quarter
estimate of $1.5 billion, the McLean, Virginia-based company
said in a quarterly filing today. Capital One said losses on
litigation could be about $150 million.

Capital One also disclosed that the Federal Housing Finance
Agency, overseer of Fannie Mae and Freddie Mac, filed three
summonses in New York state court against GreenPoint Mortgage
Funding Inc., the home lender acquired as part of the December
2006 purchase of North Fork Bancorporation.

The summonses relate to three securities backed by
GreenPoint home loans. The documents haven’t been served on
Greenpoint and complaints haven’t been filed, Capital One said.